Large global institutional investors
seem to have a developed a renewed interest for Indian realty. The latest in
the list is Chicago-headquartered hedge-fund 'Capri Capital Partners' which has
big plans for growing in country through its India arm - Capri Global Capital.
Considering this, CNBC TV18's Manasvi Ghelani finds out what's attracting
global investors to Indian realty at a time when domestic banks are shying away
from exposing themselves to the sector.
With domestic investors and banks
cautious of lending to the Indian real estate sector given the current economic
scenario, foreign investors are coming to the rescue. So after Blackstone, its
US based hedge fund Capri, which is now investing big in India through its arm
- Capri Global Capital.
The company has recently signed a
deal with real estate developer Monarch Universal Group to fund Rs 45 crore for
two residential projects in Roadpali and Kalamboli in Mumbai.
Besides, in the last nine months
Capri has invested a total of about Rs 200 crore for partnerships with Marvel
Group in Pune, CHD Developers in Delhi and Ozone & Unishire Group in
Bangalore.
Reports also suggest, Capri is
planning to launch its first India-dedicated real estate private equity fund to
raise about USD 400 million soon after the elections.
And the management says their
strategy is already yielding positive returns.
“The banks pulled back and that gave
us the opportunities to step up so we had significant appointment of capital in
the last 12 months. We have experienced very strong credit performance, in
terms of delinquencies, they have been very low. We have been able to generate
20% of returns on monies we have let out in the market,” Quintin E Primo III, Chairman,
Capri Global Capital says.
On the other hand this is good news
for cash-strapped Indian developers as well.
Sanjay Dutt, Executive MD - South
Asia, Cushman & Wakefield says: “It is important that you to de-risk your
projects and basically have equity partnership and therefore not necessarily
invest too much money from your pocket. So that has resulted in a lot of play
between developers and PE firms.”
But despite this renewed interest
from global investors, analysts say more needs to be done to help developers
and all eyes are now on the new government's policies post elections to see if
it can get in more FDI for the realty sector as well as push through REITS.
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